The French government is denying that it plans to acquire a stake in PSA, but France’s Prime Minister told reporters that mechanisms for providing government assistance have already been vetted.

At a time of high unemployment and factory closures across France, the fate of PSA is a sensitive one. PSA’s sales have been tanking, hampered by an uncompetitive product line, falling car sales in Europe and a lack of low-cost product to compete in emerging markets.

“We do have a tool, the FSI (France’s sovereign-wealth fund), which can if necessary take a stake. But today this question is not being looked at,”

Ironically, Peugeot, unlike its rival Renault, is entirely owned by private actors, while the French government owns a 15 percent stake in Renault. But that could change quickly given the way things are progressing.

12 Comments on “PSA May Get French Government Bailout...”

With France being the 2nd biggest economy in Europe it would more likely be the other way round. “Sorry EU, we have a motor industry we would like to keep afloat”.
Mostly it will be Germany that has the hissy fit.

Well the US did bail out GM, so I hope that the French can do the same for PSA if necessary. I live in Rennes where one of the PSA plants is located. It’s a pretty important part of the local economy.

PSA did make some pretty silly decisions. The C6, is a great car, but they only ended up making 6 a day on the one line for that car which was geared for a hundred or more. Hopefully they can stay afloat.

Peugeot has dulled the edge off Citroen. While Citroen has become Peugeot-like. Collectively PSA can’t find the path. Ayrault (who gives a merde for PSA or taxpayers,) should provide the rock upon which one may build its tomb.